M&A insurance: MGA to launch with ‘real time service’ pledge
Successful growth will hinge on attracting key underwriting talent and engaging with potential partners in the marketplace, says Dennis Kearns, MGA Sands Point Risk.
A new US-based MGA, set to launch in March 2024, has ambitions to shake up the M&A insurance market with its flagship Transaction Liability Insurance (TLI) practice and a pledge to “operate in real time with the deal itself”.
Dennis Kearns, chief executive officer of soon to launch MGA Sands Point Risk, may be a familiar name to people in the M&A insurance sector as he founded and operated the transaction solutions program at DUAL North America. With his new MGA, backed by private equity firm Avesi Partners, he has longer term plans to expand the business into a full-service MGA.
Kearns explains: "Our distinction lies in how we service these deals, as well as the proficiency with which we navigate and facilitate transactions.
"Central to this is our commitment to operating synchronously as transactions evolve; our underwriting team provides indispensable support, ensuring seamless progression from negotiation to finalisation. This demonstrates the pivotal role of insurance in facilitating the completion of transactions with finesse and efficacy."
He said that the MGA will offer a full suite of products in transaction liability designed to protect entrepreneurs, investors, and industry stakeholders and manage transaction risks, including Representation and Warranties, Tax Liability, and Contingent Liability Insurance.
Commenting on Avesi Partners, Kearns says: "Having a backer who shares our vision and supports the potential for us to build a full-service MGA was crucial.
"What is particularly noteworthy about having Avesi as a partner is their dedication to the insurance sector. They are keen on expanding their involvement in the insurance space and are primarily focused on the MGA model. They believe in our ability to collaboratively build a full-service MGA and have made a commitment to support us in achieving that goal."
Kearns believes success hinges on attracting top talent as well as engaging with potential partners in the marketplace. "We aim to be a platform that attracts underwriting talent and facilitates talent acquisition, continually expanding our presence in the market," he says. "Moving forward, we will enhance our transactional practice by recruiting leaders in tax, contingent liabilities, and senior claims representation. We will regularly assess our talent needs to capitalise on growth opportunities while providing exceptional service to our clients in real-time as deals progress," he adds.
Kearns says that MGA’s goal is to anticipate and mitigate transaction risk for entrepreneurs and drive profitable underwriting results, focusing primarily on the smaller to middle market segment where its expertise is proven. He adds that it will also explore larger deals and consider exit strategies.
"We've assembled an experienced team with expertise in underwriting transactions, particularly in representations and warranties, tax matters, and contingent liabilities. Appointing appropriate leadership for each area is crucial while maintaining our core competency in representations and warranties."
Sands Point Risk will focus on transactional liability, primarily within the US market but intends to explore opportunities in the London and European markets in the coming years.
The MGA has a clear plan for the year ahead: to successfully launch and implement the transactional liability program and establish itself as a recognised full-service provider in the field. "We envision becoming a trusted partner known for reliability and expertise in the market."
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